What the Pros Say About Spring 2024 Mortgage Rates
April 8, 2024
In the predictions leading up to New Year’s Eve and the start of 2024, many thought a housing market recovery might be well underway by springtime.
But many are revising their predictions, based in part on the recovery's progress so far and speculation about what the Fed might do about interest rates in the second quarter of 2024.
Will Mortgage Rates Drop in Spring 2024?
Some say no, but that doesn’t mean house hunters should give up hope. Many hang their hopes on the potential that the Fed will cut interest rates in late spring or early summer. Make no mistake, the Fed is NOT talking about directly cutting mortgage loan rates.
Instead, the Fed is talking about lowering the rate for lenders who loan money to the public. The cheaper rates for the lender can translate into lower mortgage rates, but not directly. Will the Fed cut those rates in late spring?
The Fed Is Waiting
Multiple sources have written about the Fed’s “wait-and-see” policy toward cutting rates. CBS News reports some mortgage lenders saying, "Despite their recent communications” about future (Fed) rate cuts, expecting a substantial drop in mortgage rates in the short term might be overly optimistic."
Some, according to CBS, don’t see the potential for mortgage rates to drop until the Fed’s scheduled meeting in June 2024.
The agency may or may not lower rates, those rates may only be lowered by a small amount, and in any case, it will take time for whatever actions the Fed decides to take before the numbers can catch up and show signs of a real recovery and are not just a brief, investor reaction to Fed news.
Should House Hunters Wait for Rates to Drop?
There are sometimes conflicting messages about the state of the housing market. Sometimes, you hear that housing inventory is lower, and sometimes, you hear about more homes for sale being available than expected.
Bottom line? If you are ready to start house hunting now, there is no reason NOT to, but there is no need to rush into a phase of your home loan journey if you are still getting ready. Much depends on the conditions in your local housing market rather than nationwide breaking news, at least for the short term.
Local Market Conditions Count
In other words, if there are plenty of houses for sale in your market, and you feel ready to start looking, by all means, do so.
Waiting for the “right” mortgage rate may not serve you well, especially if you need to buy a home sooner rather than later. Those who can afford to wait may profit a bit by doing so, but its likely a bad idea to delay in hopes of seeing rates fall closer to the low 6% range compared to what’s available at press time.
------------------------------
RELATED VIDEOS:
Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
Analyzing Your Debt Ratio
But many are revising their predictions, based in part on the recovery's progress so far and speculation about what the Fed might do about interest rates in the second quarter of 2024.
Will Mortgage Rates Drop in Spring 2024?
Some say no, but that doesn’t mean house hunters should give up hope. Many hang their hopes on the potential that the Fed will cut interest rates in late spring or early summer. Make no mistake, the Fed is NOT talking about directly cutting mortgage loan rates.
Instead, the Fed is talking about lowering the rate for lenders who loan money to the public. The cheaper rates for the lender can translate into lower mortgage rates, but not directly. Will the Fed cut those rates in late spring?
The Fed Is Waiting
Multiple sources have written about the Fed’s “wait-and-see” policy toward cutting rates. CBS News reports some mortgage lenders saying, "Despite their recent communications” about future (Fed) rate cuts, expecting a substantial drop in mortgage rates in the short term might be overly optimistic."
Some, according to CBS, don’t see the potential for mortgage rates to drop until the Fed’s scheduled meeting in June 2024.
The agency may or may not lower rates, those rates may only be lowered by a small amount, and in any case, it will take time for whatever actions the Fed decides to take before the numbers can catch up and show signs of a real recovery and are not just a brief, investor reaction to Fed news.
Should House Hunters Wait for Rates to Drop?
There are sometimes conflicting messages about the state of the housing market. Sometimes, you hear that housing inventory is lower, and sometimes, you hear about more homes for sale being available than expected.
Bottom line? If you are ready to start house hunting now, there is no reason NOT to, but there is no need to rush into a phase of your home loan journey if you are still getting ready. Much depends on the conditions in your local housing market rather than nationwide breaking news, at least for the short term.
Local Market Conditions Count
In other words, if there are plenty of houses for sale in your market, and you feel ready to start looking, by all means, do so.
Waiting for the “right” mortgage rate may not serve you well, especially if you need to buy a home sooner rather than later. Those who can afford to wait may profit a bit by doing so, but its likely a bad idea to delay in hopes of seeing rates fall closer to the low 6% range compared to what’s available at press time.
------------------------------
RELATED VIDEOS:
Here's the Scoop on Conventional Loans
When Do You Need a Cosigner?
Analyzing Your Debt Ratio
Do you know what's on your credit report?
Learn what your score means.
